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Full text of "Schedule of present federal excise taxes"

[JOINT COMMITTEE PRINT] 



SCHEDULE OF PRESENT 
FEDERAL EXCISE TAXES 
(AS OF JANUARY 1, 1989) 



Prepared by the Staff 

OF THE 

JOINT COMMITTEE ON TAXATION 




JANUARY 31, 1989 



U.S. GOVERNMENT PRINTING OFFICE 
82-132 WASHINGTON : 1989 JCS-2-89 



CONTENTS 



Page 

troduction 1 

Schedule of Present Federal Excise Tax Rates 2 

A. Alcohol Excise Taxes 2 

1. Alcoholic beverage taxes 2 

2. Alcohol occupational taxes 2 

B. Tobacco Excise Taxes 3 

1. Cigars 3 

2. Cigarettes 3 

3. Cigarette papers and tubes 3 

4. Snuff, chewing tobacco, pipe tobacco 3 

5. Tobacco occupational tax 3 

C. Highway Trust Fund Excise Taxes 4 

1. Motor fuels 4 

2. Trucks and trailers 4 

3. Tires for highway vehicles 5 

4. Use tax on heavy highway vehicles 5 

D. Airport and Airway Trust Fund Excise Taxes 5 

1. Air passenger ticket tax 5 

2. International departure tax 5 

3. Domestic air cargo tax 5 

4. Fuels taxes for noncommercial (general) aviation.. 5 

E. Environmental Excise Taxes 6 

1. Taxes for Hazardous Substance Superfund 6 

2. Taxes for Leaking Underground Storage Tank 

Trust Fund 7 

3. Tax for Oil Spill Liability Trust Fund 7 

F. Communications (Telephone) Excise Tsix 7 

G. Gas Guzzler Excise Tax 8 

H. Harbor Maintenance Trust Fund Excise Tax 8 



(III) 



IV 



I. Inland Waterways Trust Fund Excise Tax 

J. Aquatic Resources Trust Fund Excise Taxes 

1. Boating Safety Account taxes 

2. Sport Fish Restoration Account taxes 

K. Bows and Arrows and Firearms Excise Taxes 

1. Bows and arrows 

2. Regular firearms and ammunition 

3. "Non-regular" firearms 

L. Black Lung Disability Trust Fund Excise Taxes 

1. Coal excise tax 

2. Excise taxes on black lung benefit trusts 

M. Vaccine Injury Compensation Trust Fund Excise Tax. 
N. Miscellaneous Excise Taxes 

1. "Penalty" excise taxes 

a. Lobbying expenditures 

b. Private foundation activities 

c. Black lung benefit trusts 

d. Political expenditures of sec. 501(c)(3) organi- 

zations 

e. Qualified pension, etc., plans 

f. Real estate investment trusts 

g. Regulated investment trusts 

h. Excise tax on issuer of registration-required 

obligation not in registered form 

i. Excise tax on golden parachute excess pay- 
ments 

j. Excise tax on large group health plans 

k. Excise tax on "greenmail" 

2. Excise tax on private foundation net investment 

income 

a. Domestic foundations 

b. Foreign foundations 

3. Deep Seabed Revenue Sharing Trust Fund excise 

tax on certain hard minerals 

4. Excise tax on foreign insurance policies 

5. Wagering excise taxes 



V 

PaRe 

Federal Excise Tax Receipts, Fiscal Years 1987-1989 20 

)pendix 23 

Table 1. Excise Tax Rates on Certain Chemicals for the 

Hazardous Substance Superfund 24 

Table 2. List of Taxable Substances for Excise Tax on 

Certain Imported Substances 25 



INTRODUCTION 

This pamphlet, ^ prepared by the staff of the Joint Committee on 
ixation, provides a listing of present Federal excise taxes and tax 
tes as of January 1, 1989.2 The pamphlet also provides data on 
(deral excise tax receipts for fiscal years 1988-1990. This pam- 
ilet is intended to provide summary information on current Fed- 
al excise taxes for Members of the House Committee on Ways 
id Means, Members of the Senate Committee on Finance, and 
her Members of Congress. 

The listing of the various current Federal excise taxes (Part I) is 
ganized into 14 categories, including a category of "miscellane- 
s" excises. {Note: The crude oil windfall profit tax was repealed 
August 23, 1988, in the Omnibus Trade and Competitiveness Act 
1988; P.L. 100-418, sec. 1941.) The listing includes information as 
whether revenues from the particular excise taxes go into a 
ust Fund (or other special fund), any scheduled expiration dates 
changes in tax rates, and the pertinent sections of the Internal 
! venue Code.^ Part II of the pamphlet presents data on Federal 
cise tax receipts for fiscal years 1988-1990. An Appendix con- 
ins tables showing: (1) the excise tax rates on feedstock chemicals 
!C. 4661); and (2) the list of taxable substances subject to the 
cise tax on certain imported (chemical) substances (sec. 4671). 



This pamphlet may be cited as follows: Joint Committee on Taxation, Schedule of Present 
leral Excise Taxes /as of January 1, 1989) (JCS-2-89) January 31, 1989. 

See also, prior Joint Committee staff pamphlet. Schedule of Present Federal Excise Taxes (As 
\pril 1, ;^«7)(JCS-13-87), May 28, 1987. 

Code sections in the 9500's refer to the Trust Fund Code provisions. The other Code sections 
ed refer to the applicable excise tax provisions. 

(1) 



I. SCHEDULE OF PRESENT FEDERAL EXCISE TAX RATES 

(AS OF JANUARY 1, 1989) 

Tax (and Code section) Tax rates 

A. Alcohol Excise Taxes 

1. Alcoholic beverage taxes: 

Distilled spirits (sec. 

5001) $12.50 per proof gallon. 

Wines (sec. 5041): \ 

Not more than 14 

percent alcohol 17 cents per wine gallon. 

14 to 21 percent al- 
cohol 67 cents per wine gallon. 

21 to 24 percent al- 
cohol ^ $2.25 per wine gallon. 

Artificially carbon- 
ated wines $2.40 per wine gallon. 

Champagne and 
other sparkling 

wines $3.40 per wine gallon. 

Beer (sec. 5051) $9 per barrel (31 galloi 

generally. 2 

2. Alcohol occupational taxes: ^ 

Producers: 

Distilled spirits and 

wines (sec. 5081) $1,000 a year per premise.* 

Brewers (sec. 5091).... $1,000 a year per premise.'* 
Wholesale dealers (sec. 
5111): 
Liquors, wines, or 

beer $500 a year. 

Retail dealers (sec. 
5121): 
Liquors, wines, or 

beer $250 a year. 

Nonbeverage use of dis- 
tilled spirits (sec. 

5131) $500 a year. 

Industrial use of dis- 
tilled spirits (sec. 
5276) $250 a year. 

' Wines containing more than 24 percent alcohol are taxed as distilled spiri 
2 $7 per barrel on the first 60,000 barrels removed each year by small domes 

brewers who produce less than 2,000,000 barrels of beer during the calendar ye 
^ July 1-June 30 is the taxable year for these and other occupational tax 
* Tax is $500 a year per premise for businesses with gross receipts of less th 

$500,000 in the preceding taxable year. 

(2) 



Tax (and Code section) 



Tax rates 



Pobacco Excise Taxes 

/. Cigars (sec. 5701(a)): 

Small cigars (weighing 
no more than 3 
pounds per thousand)... 75 cents per thousand. 

Large cigars (weighing 
more than 3 pounds 
per thousand) SV2 percent of wholesale price 

(but not more than $20 per 

thousand). 

2. Cigarettes (sec. 5701(b)): 

Small cigarettes (weigh- 
ing no more than 3 

pounds per thousand)... $8 per thousand (i.e., 16 cents 

per pack of 20 cigarettes). 

Large cigarettes (weigh- 
ing more than 3 
pounds per thousand)... $16.80 per thousand.^ 

3. Cigarette paper and tubes: 

Cigarette paper (sec. 

5701(c)) 1/2 cent for each 50 papers.^ 

Cigarette tubes (sec. 

5701(d)) 1 cent for each 50 papers.'^ 

4. Snuff, chewing tobacco, 
pipe tobacco: 

Snuff (sec. 5701(e)(1)) 24 cents per pound. 

Chewing tobacco (sec. 

5701(e)(2)) 8 cents per pound. 

Pipe tobacco (sec. 

5701(f)) 45 cents per pound (effective on 

Jan. 1, 1989). 

5. Tobacco occupational tax: 

Manufacturers or ex- 
porters of taxable to- 
bacco products (sec. 
5731) $1,000 a year per premise.® 

Large cigarettes measuring more than 6 ¥2 inches in length are taxed at the 
prescribed for small cigarettes, counting each 2% inches (or fraction) as one 

rette. 

Cigarette papers measuring more than QV2. inches in length are taxed at the 
prescribed, counting each 2% inches (or fraction) as one cigarette paper. Tax 

; not apply to a book or set of cigarette papers containing 25 or fewer papers. 

Cigarette tubes measuring more than GVa inches in length are taxed at the rate 

cribed, counting each 2% inches (or fraction) as one cigarette tube. 

Pax is $500 a year per premise for businesses with gross receipts of less than 

),000 in the preceding taxable year. 



Tax (and Code section) 


Tax rates 


C. Highway Trust Fund Excise Taxes (sec. 9503) ^ ^ 


1. Motor fuels:* 




Gasoline (sec. 4081) 


9 cents/gallon. A 

■i 


Diesel fuel (sees. 


4041(a)(1), 4091) 


15 cents/gallon generally. ^° 


Special motor fuels 


(incl. alcohol fuels 




from petroleum) (sec. 




4041(a)(2)) 


9 cents/gallon. 


Methanol and ethanol 




fuels: i» 




Fuels from other 




than petroleum 


i 

4 


or natural gas 


(sec. 4041(b)(2)) 


3 cents/gallon (i.e., a 6 cent! 




gallon exemption). ^ ^ 


Fuels from natural 


1 


gas (sec. 4041(m)) ... 


4.5 cents/gallon (i.e., a 4.5 cents 




gallon exemption). 


Gasohol (sec. 4081(c)) 


3 cents/gallon (i.e., a 6 cents 




gallon exemption for 10% < 




more alcohol-gasoline blend). 



Diesohol(secs.4041(k)(l), 

4091(c)) 9 cents/gallon (i.e., a 6 cents 

gallon exemption for 10% ( 

„ _ , , ., more alcohol-diesel blend). 

2. 1 rucks and trailers: 

Trucks (over 33,000 lbs.) 
and trailers (over 
26,000 lbs.) (sec. 
4051) ^^ 12 percent of retail price. 

*See also E.2., "Taxes for Leaking Underground Storage Tank Trust Fund," f 
additional tax of 0.1 cent per gallon on motor fuels (through 1991). 

^ The Highway Trust Fund taxes and exemptions are scheduled to expire aft 
September 30, 1993. 

^"A net t£ix of 3 cents per gallon (12 cents/gal. refund or credit) applies 
certain privately operated, scheduled intercity buses (sec. 6427(b)). 

There is a one-time rebate (credit or refund) to the original purchaser of 
qualified diesel-powered car, truck, or van having a gross vehicle weight rating 
10,000 pounds or less. The rebate varies with the model year (only available f 
post-1978 models) and type of vehicle (higher rebate for a truck or van than for 
car). The credit applies to such vehicles owned as of January 1, 1985, or original 
purchased after January 1, 1985 and before January 1, 1993 (sec. 6427(g 

^ * Alcohol fuels the content of which is at least 85 percent of methanol, ethan( 
or other alcohol. 

'^The additional 0.1 cent per gallon tax imposed under section 4041(d) for tl 
Leaking Underground Storage Tank Trust Fund (see E.2, below) is 0.05 cent p 
gallon for such methanol and ethanol fuel (sec. 4041(b)(3)). 

1 ^ Includes tractors of the kind chiefly used for highway transportation with 
trailer or semitrailer. 



Tax (and Code section) Tax rates 

3. Tires for highway vehicles 

(sec. 4071) 40 pounds or less — no tax. 

40-70 pounds — 15 cents/pound 
over 40 pounds. 

70-90 pounds— $4.50, plus 30 
cents/pound over 70 pounds. 

Over 90 pounds— $10.50, plus 50 
cents/pound over 90 pounds. 

4. Use tax on heavy highway 

vehicles (sec. 4481) ^^ Under 55,000 pounds— no tax. 

55,000-75,000 pounds— $100 plus 
$22 per 1,000 pounds over 
55,000. 

Over 75,000 pounds— $550. 

Airport and Airway Trust Fund Excise Taxes (sec. 9502)^^ 

1. Air passenger ticket tax 

(sec. 4261) 8 percent of amount paid. 

2. International departure 

tax (sec. 4261(c)) $3 per person. 

3. Domestic air cargo tax 

(sec. 4271) 5 percent of amount paid. 

4. Fuels taxes for noncom- 
mercial (general) avia- 
tion:* 

Gasoline (sees. 4081 and 
4041(c)) 12 cents per gallon. 

Nongasoline (sees. 4041 
(c) and 4091) 14 cents per gallon. 

*See also E.2., "Taxes for Leaking Underground Storage Tank Trust Fund," for 
ditional tax of 0.1 cent per gallon on motor fuels (through 1991). 

''Annual tax: the taxable period is July l-June 30. Tax liability is incurred as 
the first month the vehicle is used during the taxable period. If the first use is 
er July, the tax is prorated for the taxable period. The tax may be paid in 
arterly installments. 

rhe use tax is reduced by 25 percent for vehicles (1) used exclusively in 
insporting harvested forest products to and from the forested site and which are 
}uired to be registered for that purpose, or (2) registered in Canada or Mexico, 
rhere is an exemption for vehicles used fewer than 5,000 miles on public 
jhways during the taxable period (7,500 miles for farm vehicles), and for certain 
al transit buses. Also, there is a prorated refund of tax for trucks destroyed or 
lien during the taxable period. 

'^The Airport and Airway Trust Fund taxes are scheduled to expire after 
cember 31, 1990. The Airport and Airway Revenue Act of 1987 (Title IV of P.L. 
3-223) provides that the aviation excise taxes (other than the departure tax) are 
be reduced by one-half for 1990 if the total appropriations for fiscal years 1988 
d 1989 for airport improvements, facilities and equipment, plus research, 
gineering and development are less than 85 percent of the total trust fund 
lounts authorized for these three programs for fiscal years 1988 and 1989. 



Tax (and Code section) Tax rates 

E. Environmental Excise Taxes 

/. Excise taxes for Hazardous Substance Superfund (a 
9507): 16 

Crude oil tax (sec. 4611)... 8.2 cents per barrel for domes 

crude oil; 11.7 cents per bar 
for imported petroleum pr 
ucts. 

Tax on feedstock chemi- 
cals (sec. 4661) Tax ranges from $0.22 to $4 

per ton generally. (See Tal3l 
in the Appendix for speci 
tax rates for chemicals.) ^'^ 

Tax on certain imported 
substances (sec. 

4671) 1^ Generally taxed (beginning J; 

1, 1989) at the rates applica 
to taxable chemicals un( 
sec. 4661 used as materials 
the manufacture of the i 
ported substance. If impor 
does not furnish adequate 
formation to Treasury to 
termine tax rate, the rate i 
percent of the value of si 
imported substance. No 1 
applies to a substance 
which a tax is imposed un< 
sec. 4611 or sec. 4661. {i 
Table 2 in the Appendix 
initial list of taxable si 
stances.) 

^® The Superfund also receives revenues from the environmental tax on corpi 
tions (sec. 59 A), equal to 0.12 percent of the modified alternative minimum taxj 
income of the corporation in excess of $2,000,000. This tax applies generallj 
taxable years beginning after December 31, 1986, and before January 1, 1992 (v 
an earlier termination as determined below when the Superfund reaches cerl 
levels of unobligated balance or total tax receipts). 

The Superfund excise taxes are scheduled to expire after December 31, 1991 
earlier if (1) the Superfund unobligated balance exceeds $3,500 million at the 
of 1989 or 1990, and if the unobligated balance is estimated to exceed this amo 
at the end of the following year if no Superfund taxes were to be imposed dui 
such year, or (2) when total Superfund tax revenues exceed $6,650 mil 
(including the sec. 59 A tax revenues). 

^^ For periods before 1992, the tax on xylene is $10.13 per ton, instead of %A 

*^The excise tax on certain imported substances began on January 1, 1989, v 
the same expiration schedule as for the other Superfund taxes. 

The Secretary of the Treasury is required to add any substance to the list if 
Secretary determines that taxable chemicals constitute more than 50 percent 
the weight or value of the materials used to produce such substance (determi 
on the basis of the predominant method of production); the Secretary may rem 
only those substances which meet neither test. 



Tax (and Code section) Tax rates 

2. Taxes for Leaking Underground Storage Tank Trust Fund 
(sec. 9508): ^^ 

Gasoline (sec. 4081(b)(2) 

(B)) 0.1 cent per gallon (including 

aviation use). 

Other motor fuels (sees. 

4041(d) and 4091) 0.1 cent per gallon (including 

fuels used in motor vehicles, 
motorboats, trains, or avia- 
tion, but excluding liquid pe- 
troleum gas). 

Fuels used in inland wa- 
terways (sec. 4042) 0.1 cent per gallon. 

3. Tax for Oilspill Liability 
Trust Fund (sec. 9509): 

Crude oil (sec. 4611(c) 
(2)(B) and sec. 4611(f)) . 1.3 cents per barrel. ^^^ 

, Communications (Telephone) Excise Tax 

Local and toll (long-distance) 
telephone and teletype- 
writer services (sec. 4251).... 3 percent of amount paid 

(through Dec. 31, 1990). 

1^ These taxes are scheduled to expire after December 31, 1991, or earlier if the 
t revenues from these taxes to the Trust Fund reach $500 million. (See also C.I., 
r Highway Trust Fund taxes on motor fuels; D.4., for Airport and Airway Trust 
md taxes on noncommercial aviation fuel; I., for tax on fuels used on inland 
iterways; and J., for tax on motor boat fuels.) 

^^^Note: This tax will go into effect only if "qualified authorizing legislation" is 
acted before December 31, 1990, which is substantially identical to subtitle E of 
le VI, or subtitle D of title VIII, of H.R. 5300 (99th Congress) as passed by the 
3use of Representatives. (See sec. 6108 of the Technical and Miscellaneous 
avenue Act of 1988, P.L. 100-647.) The tax is to be terminated if $300 million or 
are is collected before January 1, 1992. 



Tax (and Code section) Tax rates 



G. Gas Guzzler Excise Tax (sec. 4064) 



Fuel economy rating (in miles per gallon): Tax per vehich 

At least 22.5 

At least 21.5 but less than 22.5 $500 

At least 20.5 but less than 21.5 650 

At least 19.5 but less than 20.5 850 

At least 18.5 but less than 19.5 1,050 

At least 17.5 but less than 18.5 1,300 

At least 16.5 but less than 17.5 1,500 

At least 15.5 but less than 16.5 1,850 

At least 14.5 but less than 15.5 2,250 

At least 13.5 but less than 14.5 2,700 

At least 12.5 but less than 13.5 3,200 

Less than 12.5 3,850 



H. Harbor Maintenance Trust Fund Excise Tax (sec. 9505) 

Tax on use of harbors (ports) 

(sec. 4461) 0.04 percent of value of comm 

cial cargo loaded or unloac 
at U.S. ports; exceptions 
cargo donated for overseas i 
and for cargo (other tl: 
cargo destined for a fore: 
country) shipped between L 
mainland and Alaska (exci 
for crude oil), Hawaii, and 
U.S. possessions, as well 
cargo shipped between Alas 
Hawaii, and/or U.S. pos£ 
sions. 



Tax (and Code section) Tax rates 

Inland Waterways Trust Fund Excise Tax (sec. 9506) 

Tax on diesel and other 
liquid fuels used by com- 
mercial cargo vessels on 
specified inland or intra- 
coastal waterways (sec. 
4042)* 

Through 1989 10 cents per gallon. 

1990 11 cents per gallon. 

1991 13 cents per gallon. 

1992 15 cents per gallon. 

1993 17 cents per gallon. 

1994 19 cents per gallon. 

1995 and thereafter 20 cents per gallon. 

Aquatic Resources Trust Fund Excise Taxes (sec. 9504) 

/. Boating Safety Account taxes: 

Gasoline and special 
fuels used in motor- 
boats (sees. 4081 and 

4041(a)(2))** 9 cents per gallon (through Sept. 

30, 1993); transfer to the Ac- 
count limited to $60 million 
per year for fiscal years 1989 
and 1990 and $70 million per 
year thereafter. ^^ 

2. Sport Fish Restoration Account taxes: 

Gasoline and special 
fuels used in motor- 
boats (sees. 4081 and 

4041(a)(2))** 9 cents per gallon (through Sept. 

30, 1993); the balance of re- 
ceipts in excess of the 
amounts indicated in J.I., 
above, and footnote 20 (sec. 
9503(c)(4)(C)). 

Sport fishing equipment 

(sec. 4161(a)) 10 percent of manufacturers 

price; except 3 percent for 
electric outboard motors and 
certain fish finders (tax on 
fish finders limited to $30 per 
item). 

*See also E.2., "Taxes for Leaking Underground Storage Tank Trust Fund," for 
iditional tax of 0.1 cent per gallon on such fuel, through 1991. 
**See also E.2., for additional tax of 0.1 cent per gallon on such fuel, through 
>91. 

-°Sec. 9503(c)(4)(A). Also, $1 million per fiscal year of these motorboat fuel tax 
(venues goes to the Land and Water Conservation Fund (sec. 9503(c)(4)(B)). 



10 

Tax (and Code section) Tax rates 

K. Bows and Arrows and Firearms Excise Taxes | 

1. Bows and arrows (sec. \ 
4161(h))^^ 11 percent of manufacture 

price. 2^ 

2. Regular firearms and am- 
munition (sec. 4181): 21- 23 

Pistols and revolvers 10 percent of manufacture 

price. 

Firearms other than 

pistols and revolvers 11 percent of manufacture 

price. 

Ammunition (shells and 

cartridges) 11 percent of manufacture 

price. 

3. "Non-regular" firearms: ^'^ 

Occupational taxes (sec. 
5801): 2 5 

Importers and 

manufacturers $1,000 a year per premise.26 

Dealers $500 a year per premise. 

Transfer taxes (sec. 
5811): 

Generally $200 per transfer. 

Certain concealable 
weapons (see sec. 

5845(e)) $5 per transfer. 

Making tax (sec. 5821) $200 per firearm. 

^^ Revenues from these taxes (sees. 4161(b) and 4181) are appropriated, in 
fiscal year following receipt, to the Federal Aid to Wildlife Program ("Pittm 
Robertson Fund") for support of State wildlife programs. 

^2 The tax is imposed on bows having a draw weight of 10 pounds or m( 
Under P.L. 98-369, the tax on arrows was expanded to apply also to arrows fe. 
than 18 inches in length (only arrows 18 inches or more in length were ta 
previously) which are suitable for use with a taxable bow (e.g., crossbow 

2^ There are annual Federal licensing fees for manufacturers, importers i 
dealers in regular firearms under the Gun Control Act of 1968 (18 U.S.C. 9 

^"^ Firearms not listed above in K.2., i.e., machine guns, "destructive devic 
(e.g., explosive devices such as bombs, grenades, small rockets, mines, etc.), saw 
off shotguns or rifles, silencers, and certain concealable weapons. 

^^ July 1-June 30 is the taxable year for the occupational taxes. There are i 
annual Federal licensing fees for manufacturers, importers and dealers in desti 
tive devices or ammunition for destructive devices (18 U.S.C. 923). 

2^ Tax is $500 a year per premise for a business with gross receipts of less tl 
$500,000 for a preceding taxable year. 



11 

Tax (and Code section) Tax rates 

Black Lung Disability Trust Fund Excise Taxes (sec. 9501) 

/. Coal excise tax (sec. 4121)... $1.10 per ton for coal from un- 
derground mines and 55 cents 
per ton for coal from surface 
mines (but no more than 4.4 
percent of the coal's selling 
price). 2'^ 

2. Excise taxes on black lung 
benefit trusts (sees. 4951, 

4952, and 4953) Varying rates on certain activi- 
ties. (See "Penalty" excise 
taxes, N.l.c, below.) 



Vaccine Injury Compensation Trust Fund Excise Tax (sec. 

;io) 

Vaccine ^^ Tax rate (per dose) 

Excise tax on certain vaccines 

(sec. 4131) 28 DPT ^o $4.56 

DT3 1 0.06 

MMR32 4.44 

Polio 0.29 

Tax does not apply to lignite. On the earlier of January 1, 2014, or any 

lary 1 after 1981 on which there is no balance of repayable advances to the 

It Fund and no unpaid interest on such advance, the tax rates are scheduled to 

rn to the pre-1982 rates (i.e., 50 cents/ton for underground mines, and 25 

s/ton for surface mines, limited to 2 percent of the price). 

Tax is to be terminated after December 31, 1992, or earlier if tax collections 

ed projected Trust Fund liability. 

(Combinations of vaccines are taxed at the sum of the combined rates for each 

ble vaccine. 

Diphtheria, Pertussis, and Tetanus (any vaccine containing pertussis bacteria, 

acted or partial cell bacteria, or specific pertussis antigens). 

Diphtheria or Tetanus (other than a DPT vaccine). 

Measles, Mumps, or Rubella (vaccine against any one or combination of two or 

3 of these). 



12 



Tax (and Code section) 



Tax rates 



N. Miscellaneous Excise Taxes 

/. "Penalty" excise taxes: 

a. Lobbying expendi- 
tures: 
Public charities 
making an elec- 
tion under sec. 
501(h) (sec. 4911)... 

Charitable organi- 
zations disquali- 
fied from tax- 
exempt status be- 
cause of lobbying 
expenditures (sec. 
4912) 



Tax of 25 percent of excess 
bying expenditures. 



b. Private foundation 
activities: 

Self-dealing (sec. 
4941) 



Tax of 5 percent of lobbying 
penditures on the orgar 
tion; 5-percent tax also on 
manager. 



Initial tax. — 5 percent of 
amount of self-dealing on 
self-dealer; 2y2 percent 
foundation manager (up 

$10,000). 

Additional tax. — If the self-d 
ing is not corrected within 
correction period, there i 
tax of 200 percent of 
amount on the self-dea 
also, a tax of 50 percent o 
foundation manager (up 
$10,000). 



13 

Tax (and Code section) Tax rates 



. "Penalty" excise taxes (Cont) 

Failure to distrib- 
ute income (sec. 

4942) Initial tax. — 15-percent tax on 

the foundation on the amount 
remaining undistributed at 
the beginning of the second (or 
succeeding) taxable year. 

Additional tax. — If not correct- 
ed, there is an additional tax 
of 100 percent of the amount 
not distributed at the end of 
the correction period. 

Excess business 

holdings (sec. 

4943) Initial tax. — 5-percent tax on 

the foundation on the value of 
the excess holdings. 

Additional tax. — If not correct- 
ed, there is an additional tax 
of 200 percent of the excess 
holdings at the end of a speci- 
fied period. 

Investments which 
jeopardize charit- 
able purpose (sec. 

4944) Initial taxes. — 5-percent tax on 

the foundation on the amount 
of such investment; also a 5- 
percent tax on the foundation 
manager (up to $5,000). 

Additional taxes. — 25-percent 
tax on foundation if the in- 
vestment is not removed from 
jeopardy within the correction 
period; also, a 5-percent tax is 
imposed on the foundation 
manager (up to $10,000). 
Taxable expendi- 
tures (sec. 4945) Initial toxcs.— 10-percent tax on 

the foundation on the amount 
of the taxable expenditure; 
also, a 2y2-percent tax on the 
foundation manager (up to 
$5,000). 



14 

Tax (and Code section) Tax rates 

N. 1. "Penalty" excise taxes (Cont) 

Additional taxes. — If not 
rected, there is a tax of 
percent on the foundation 
the taxable expenditure; e 
a tax of 50 percent on 
foundation manager (up 
$10,000). 

c. Black lung benefit 
trusts: 

Self-dealing (sec. 

4951) Initial taxes. — 10-percent tax 

the self-dealer on the amo 
of self-dealing; 2y2-percent 
on trustee. 

Additional taxes. — If not ( 
rected, a tax of 100 percen 
imposed on self-dealer; 50-] 
cent tax on trustee. 

Taxable expendi- 
tures (sec. 4952) Initial taxes. — 10-percent tax 

the trust on the amount of 
taxable expenditure; 2y2-] 
cent tax on trustee. 

Additional taxes. — If not 
rected, a tax of 100 percen 
imposed on the fund; 50-] 
cent tax on trustee. 

Excess contribu- 
tions to benefit 
trust (sec. 4953) 5-percent tax on the contribi 

on excess contributions to 

trust. 

d. Political expenditures 
of sec. 501 (cX<3) organi- 
zations (sec. 4955) Initial taxes. — 10 percent of 

litical expenditure on the 
ganization; 2y2-percent tax 
the manager. 
Additional taxes. — If not 
rected, a tax of 100 percen 
the political expenditure is 
posed on the organization; 
percent tax on the manaj 



15 

Tax (and Code section) Tax rates 

'Penalty" excise taxes (Cont.) 

e. Qualified pension, 
etc., plans: 

Failure to meet 
minimum fund- 
ing standards 

(sec. 4971) Initial tax.— Tax of 10 percent of 

accumulated funding deficien- 
cy is imposed on employer. (5- 
percent tax in the case of mul- 
tiemployer plans and for plan 
years beginning before 1989.) 

Additional tax. — If not correct- 
ed, a tax of 100 percent of the 
deficiency is imposed on em- 
ployer. 
Nondeductible con- 
tributions to 
qualified employ- 
er plan (sec. 4972).. Tax of 10 percent of nondeduct- 
ible contributions under the 
plan. 
Excess contribu- 
tions to IRAs, etc. 

(sec. 4973) Tax of 6 percent of excess contri- 
butions to the plan is imposed 
on individual. 
Certain accumula- 
tions in IRAs, etc. 

(sec. 4974) 50-percent tax on payee of the 

amount by which the mini- 
mum required to be distribut- 
ed during the year exceeds the 
amount actually distributed 
during the year. 
Prohibited transac- 
tion (sec. 4975) Initial tax.— Tax of 5 percent of 

the amount involved in the 
prohibited transaction is im- 
posed on the disqualified 
person. 

Additional tax. — If not correct- 
ed, a tax of 100 percent of the 
amount involved is imposed 
on the disqualified person. 



16 



Tax (and Code section) 



Tax rates 



N. 1. "Penalty" excise taxes (Cont) 

Disqualified welfare 
benefits (sec. 
4976) 



Excess fringe bene- 
fits provided by 
an employer (sec. 
4977) 



Tax of 100 percent of the 
qualified benefit amount. 



Section 1042 dispo- 
sitions of securi- 
ties by employee 
stock ownership 
plans and 
worker-owned co- 
operatives (sec. 
4978) 



Tax of 30 percent of the 
fringe benefits." 



ex( 



Section 2057 dispo- 
sitions of securi- 
ties by employee 
stock ownership 
plans and 
worker-owned co- 
operatives (sec. 
4978A) 



Tax of 10 percent of the amo 
realized on disposition. 



Excess contribu- 
tions under a 
cash or deferred 
arrangement (sec. 
4979) 



Prohibited alloca- 
tions of quaHfied 
securities by em- 
ployee stock own- 
ership plans and 
worker-owned co- 
operatives (sec. 
4979A) 



Tax of 30 percent of the amoi 
realized on disposition or 
amount repaid on cert 
loans. 



Tax of 10 percent of the sum 
excess contributions undei 
cash or deferred arrangemi 
and any excess aggregate c 
tributions under the plan 
the plan year. 



Tax of 50 percent of amount 
volved in a prohibited alio 
tion. 



17 



Tax (and Code section) 



Tax rates 



/, "Penalty" excise taxes (Cont.) 

Reversion of quali- 
fied plan assets to 
employer (sec. 
4980) 



Excess distributions 
from qualified re- 
tirement plans 
(sec. 4980A) 



Violations of health 
care continuation 
rules (sec. 4980B).. 



f. Real estate investment 
trusts (sec. 4981 A) 



g. Regulated investment 
trusts (sec. 4982) 



h. Excise tax on issuer 
of "registration-re- 
quired obligation" not 
in registered form (sec. 
4701) 



Tax of 15 percent of the amount 
of employer reversion from a 
qualified plan. 



Tax of 15 percent of excess dis- 
tributions with respect to an 
individual during calendar 
year. 



Tax of $100 per day per failure 
to comply with the health care 
continuation rules. 

Tax of 4 percent of the excess of 
required distribution for cal- 
lendar year over the distribut- 
ed amount (i.e., on the undis- 
tributed income). 

Tax of 4 percent of the excess of 
required distribution for cal- 
endar year over the distribut- 
ed amount (i.e., on the undis- 
tributed income). 



Tax of 1 percent of the principal 
amount of the "registration- 
required obligation" (defined 
in sec. 163(f)) multiplied by the 
number of years (or portions) 
of the obligation. 



18 

Tax (and Code section) Tax rates i 

N. 1. "Penalty" excise taxes (Cont) | 

i. Excise tax on "golden I 
parach ute" excess pay- 
ments (sec. 4999) Tax of 20 percent of the "exc 

payment" (defined in g 

280G(b)). 

j. Excise tax on large 
group health plans 

(sec. 5000) Tax of 25 percent of expenses 

a "nonconforming large grc 
health plan" (defined un< 
sec. 1862(b)(4)(A)(i) of i 
Social Security Act). 
k. Excise tax on "green- 
mail" (sec. 5881) Tax of 50 percent of the g; 

realized from "greenmail" ii 
consideration transferred b; 
corporation to acquire 
stock if (1) such stock has b( 
held by the shareholder 
less than 2 years, (2) 
shareholder (or any rela 
person or person acting in c 
certj made or threatened 
public tender offer for st< 
during that period, and 
such acquisition is pursuant 
an offer which was not mj 
on the same terms to 
shareholders). 

2. Excise tax on private founda- 
tion net investment income: 

a. Domestic foundations (sec. 

mo): 

General rule 2 percent of net investmi 

income. '^^ 
Tax where charitable 
payout increases by 

equivalent amount 1 percent of net investmi 

income. 
h. Foreign foundations (sec. 

4948) 4 percent of gross investmi 

income from sources wit] 
U.S. 

^^ Certain operating foundations having public involvement and not governe< 
run by disqualified persons are exempt from the 2-percent tax. 



19 

Tax (and Code section) Tax rates 

3ep Seabed Revenue Sharing 

ust Fund excise tax on cer- 

In hard minerals (mineral 

dules containing manga- 

se, nickel, cobalt, or copper) 

c. 4495) 3.75 percent of 20 percent (or 

0.75 percent) of fair market 
value of commercially recover- 
able minerals. 

xcise tax on foreign insur- 

ce policies (sec. 4371) (a) Casualty insurance and in- 
demnity bonds. — 4 cents per 
dollar of premium paid. 

(b) Life insurance, sickness and 
accident policies, and annuity 
contracts. — 1 cent per dollar 
premium paid. 

(c) Reinsurance. — 1 cent per pre- 
mium paid for reinsurance 
under (a) or (b). 

agering excise taxes: 

Certain wagers (sec. 4401) 2 percent of amount of wager, 

except that tax is 0.25 percent 
in States where wagering is 
authorized by State law. 

Occupational tax (sec. 4411).... $500 per year on person engaged 

or employed in business of ac- 
cepting wagers (taxable period 
is July-June), except that tax 
is $50 per year in States where 
wagering is authorized by 
State law. 



II. FEDERAL EXCISE TAX RECEIPTS, FISCAL YEARS 198 

1990 1 

[In millions of dollars] 

n 

''^^ actual ^«"- ^'; 

^*^^"^' mate mi' 

i 

^. Alcohol Taxes 

Distilled spirits 3,876 3,788 3,' 

Wines 280 284 

Beer 1,610 1,622 1, 

Alcohol occupational taxes 135 110 

Refunds (mostly distilled spirits) —192 —188 — 

Total alcohol taxes 5,709 5,616 5, 

B. Tobacco Taxes 

Cigars 40 40 

Cigarettes 4,550 4,396 4, 

Cigarette papers, tubes 2 2 

Smokeless tobacco (snuff, chewing 

tobacco) 24 24 

Pipe tobacco ^ 6 

Tobacco occupational tax ^ (*) (*) 

Other (imported products) 8 8 

Refunds -8 -8 

Total tobacco taxes 4,616 4,468 4, 

C. Highway Trust Fund Taxes 

Gasoline 9,167 9,348 9, 

Diesel fuel used on highways 2,755 3,395 3, 

Trucks and trailers 1,277 1,267 1, 

Tires for highway vehicles 334 318 

Highway vehicle use tax 581 88 

Other (repealed taxes) 1 3 

Total Highway Trust Fund 

taxes 14,115 14,919 14, 

D. Airport and Airway Trust Fund Taxes 

Air passenger ticket tax 2,815 3,300 ■* 2, 

International departure tax Ill 107 

Domestic air cargo tax 168 180 "* 

Fuels taxes (general) aviation 95 101 "^ 

Total Airport/ Airway Trust 

Fund taxes 3,189 3,688 ^2; 

(20) 



21 

FEDERAL EXCISE TAX RECEIPTS, FISCAL YEARS 1988- 
1990 1— Continued 

[In millions of dollars] 



Tax ^i?Sa, esti- esti 



1989 1990 

esti- esti- 

mate mate 



Environmental (Trust Fund) Excise 
axes 

Excise taxes for Hazardous Sub- 
stance Superfund 698 931 966 

Fuels taxes for Leaking Under- 
ground Storage Tank Trust Fund.... 

Refunds: Post-closure liability tax 

Total environmental excise 
taxes 

Communications (Telephone) Tax 2,610 

ras Guzzler Tax 

harbor Maintenance Trust Fund Tax ^ . 

iland Waterways Trust Fund Tax 

iquatic Resources Trust Fund Taxes 

Boating motor fuel tax 

Sport fish equipment tax 

Total Aquatic Trust Fund taxes.. 

3ows and Arrows and Firearms Taxes 

Bows and arrows 12 12 13 

Pistols and revolvers 29 30 31 

Firearms (regular), shells, car- 
tridges 85 87 89 

Other ("nonregular" firearms, oc- 
cupational) (*) (*) (*) 

Total bows and arrows, fire- 
arms taxes 

Black Lung Disability Trust Fund 
'axes 

Coal excise tax 

Taxes on black lung benefit trusts .. 

Total Black Lung Trust Fund 
taxes 

Vaccine Injury Compensation Trust 
'und Tax ^ 



125 
-9 


131 
-12 .. 


132 


812 


1,050 


1,098 


. 2,610 


2,755 


2,954 


114 


123 


133 


174 


219 


234 


48 


50 


56 


105 
103 


113 
92 


117 
86 


208 


205 


203 



126 


129 


133 


594 

(*) 


606 

(*) 


627 

(*) 


594 


606 


627 


74 


92 


99 



22 

II. FEDERAL EXCISE TAX RECEIPTS, FISCAL YEARS 19^ 

1990 1— Continued 

[In millions of dollars] 



T- aiSl -«- 



1989 1 

esti- e 

mate n 



N. Miscellaneous Excise Taxes 

"Penalty" excise taxes: 

Employee benefit and pension 

plans 212 89 

Other (*) (*) 

Tax on foundation investment 

income 279 297 

Deep Seabed Revenue Sharing Trust 

Fund tax on hard minerals (*) (*) 

Foreign insurance policies 138 70 

Wagering taxes (incl. occupational 

tax) 8 9 

Refunds ^ _139 _220 



Total misc. excise taxes 498 245 



Addendum: Other Refunds and Unapplied 

Collections ^ 2,056 31 



Total Federal Excise Taxes 34,943 34,196 3^ 

General Fund Excises 15,729 13,367 U 

Trust Fund Excises 19,214 20,829 IJ 

* Less than $500,000. 

1 This revenue table generally follows the order for excise tax categories 
Part I of this pamphlet. 

2 Tax effective on January 1, 1989. 
^ Tax effective on January 1, 1988. 

■* The FY 1990 figure assumes that the aviation "tax reduction trigger" w 
effective on January 1, 1990, which will reduce the aviation taxes (other tha: 
departure tax) by 50 percent. (See footnote 15, page 6 infra.) 

The President's FY 1990 Budget proposes to repeal this tax reduction tri 
which would increase the FY 1990 Airport and Airway Trust Fund tax revenu 
$1,190 million. 

^ The harbor maintenance excise tax is classified as a Customs trust fund re 
in the fiscal year 1990 budget. 

^ $200 million of the FY 1989 amount is attributable to foreign insurance € 
tax refunds under the Bermuda Tax Treaty as approved by the Senate in Oc 
1988. 

■^ Note: The crude oil windfall profit tax was repealed in the Omnibus Trad< 
Competitiveness Act of 1988 (P.L. 100-418), effective for oil removed on or 
August 23, 1988. Amounts (receipts and refunds) for this tax are included ir 
category. 

Source: Fiscal Year 1990 Budget of the United States Government and Trei 
Department. 



APPENDIX 



Table 1. — Excise Tax Rates on Certain Chemicals for the 
Hazardous Substance Superfund ^ 



Feedstock Chemical (Sec. 4661) 


Tax per ton 


ylene 


$4.87 


ene 


4.87 


ne 


4 87 


lene 


4.87 


diene 


4.87 


lene 


4.87 


lane 


3.44 


;halene 


4.87 


ylene 


4.87 


Bne 


4.87 


ne ^ 


4.87 


lonia 


2.64 


mony 


4.45 


mony trioxide 


3.75 


nic 


4.45 


nic triozide 


3.41 


iim sulfide 


2.30 


line 


4.45 


nium 


4.45 


rine 


2.70 




4.45 


mite 


1.52 


ssium dichromate 


1.69 


am dichromate 


1.87 


It 


4.45 


ic sulfate 


1.87 


"ic oxide 


3.59 


OUS oxide 


3.97 


rochloric acid 


0.29 


rogen fluoride 


4.23 


[ oxide 


4.14 


:urv 


4.45 


el 


4.45 


iphorus 


4.45 


nous chloride 


2.85 


nic chloride 


2.12 


chloride 


2.22 


sulfate 


1.90 


(23) 





! 

Table 1. — Excise Tax Rates on Certain Chemicals for the \ 
Hazardous Substance Superfund ^ — Continued 

Feedstock Chemical (Sec. 4661) Tax pei' 

Potassium hydroxide i 

Sodium hydroxide 

Sulfuric acid i 

Nitric acid 

^ The tax on feedstock chemicals is scheduled to expire December 31, 199 
earlier if (1) the Superfund unobligated balance exceeds $3,500 million at the 
of 1989 or 1990, and if the unobligated balance is estimated to exceed this am 
at the end of the following year if no Superfund taxes were to be imposed di 
such year, or (2) when total Superfund tax revenues exceed $6,650 mi 
(including the sec. 59A tax revenues). 

2 For periods before 1992, the tax rate for xylene is $10.13. 



25 

ible 2. — List of Taxable Substances Under the Excise Tax on 
Certain Imported Substances (Sees. 4671-4672) 



Taxable Substance' 



Taxable Substance' 



ene 

ene 

nonium nitrate 

el oxide 

"opyl alcohol 

lene glycol 

'1 chloride 

ethylene resins, total 

butadiene 

sne-butadiene, latex 

gne-butadiene, snpf 

hetic rubber, not containing 

lers 

I 

onickel 

ochromium nov 3 pet. 

ochrome ov 3 pet. carbon 

rought nickel 

el waste and scrap 

Light nickel rods and wire 

el powders 

lolic resins 

vinylchloride resins 

styrene resins and copoly- 

3rs 

i alcohol for nonbeverage 

e 



Ethylbenzene 

Methylene chloride 

Polypropylene 

Propylene glycol 

Formaldehyde 

Acetone 

Acrylonitrile 

Methanol 

Propylene oxide 

Polypropylene resins 

Ethylene oxide 

Ethylene dichloride 

Chylohexane 

Isophthalic acid 

Maleic anhydride 

Phthalic anhydride 

Ethyl methyl ketone 

Chloroform 

Carbon tetrachloride 

Chromic acid 

Hydrogen peroxide 

Polystyrene homopolymer resins 

Melamine 

Acrylic and methacrylic acid 

resins 
Vinyl resins 
Vinyl resins, nspf 



)r applicable tax, see E. 1, and relevant chemical feedstock tax rates in Table 
ginning in 1989, imported taxable substances generally are taxed at the rate 
;able to the chemical feedstocks that are components of the taxable imported 
ince. 

e Secretary of the Treasury is required to add any substance to the list if the 
tary determines that taxable chemicals constitute more than 50 percent of 
eight or value of the materials used to produce such substance (determined 
e basis of the predominant method of production); the Secretary may remove 
:hose substances which meet neither test. 



o